Disruptions in global supply chains: the value of collaboration and visibility.

Disruptions in global supply chains continue to occur in a complex and volatile environment.

The combination of geopolitical, economic, environmental and technological factors poses significant challenges for companies that depend on an efficient and predictable flow of goods.

In this context, having Supply Chain Visibility (SCV) solutions, such as FIELDEAS Track and Trace, becomes key to ensure real-time traceability and a quick reaction capacity.

Major supply chain disruptions

Below, we analyze the main challenges that will mark the management of supply chains and how technology can help overcome them.

Geopolitics: uncertainty and protectionism

Trade and political tensions will continue to impact the supply chain:

Tariff war

The protectionist policy initiated by Donald Trump in the United States imposes new barriers to global trade that directly affect Canada, Mexico, Europe and China.

The most vocal, the 25% tariffs on aluminum and steel, to which Europe has responded by imposing new duties on U.S. products. Despite the signing of the 90-day suspension of countermeasures to Trump’s tariff policies, Europe will move forward if negotiations do not progress.

As a result, this global trade war will lead to changes in the supply chains of the affected products and will require readjustment by companies and governments.

War in Ukraine

Since February 2022, Russia’s invasion of Ukraine has led to a major disruption of supply chains, as Ukraine is a leader in the production and export of agricultural products, such as grain.

Pending a definitive ceasefire, this conflict is still a source of increased costs and diversion of routes. In particular, this war has forced the closure of Ukrainian airspace and limited commercial land routes in Eastern Europe, which has led to increased transportation costs.

Red Sea Crisis

The Red Sea crisis, stemming from the Israeli-Palestinian conflict, continues to threaten the stability of international trade, as attacks on merchant ships have caused shipping lines to divert their routes from the Suez Canal to the Cape of Good Hope (South Africa).

This diversion of trade routes has a major impact on global supply chains, as the Suez Canal used to host more than 12% of world trade.

In addition, these diversions have had a direct impact on ocean freight rates by increasing transit times on trade routes from Asia to Europe.

Cyber risks

On the other hand, global supply chains rely on digital systems to coordinate operations, manage inventories and optimize logistics routes.

However, this digitalization makes them vulnerable to cyber-attacks, which have increased in frequency and impact in recent years.

Cyber threats can paralyze operations, generate millions of dollars in losses and compromise data security, which is why the commitment to cybersecurity must be firm in all companies involved in the supply chain.

Infrastructure and logistics: congestion and increased costs

Global trade faces a persistent challenge: the saturation of ports, transport routes and logistics centers.

Despite advances in digitization and automation, bottlenecks in the main trade corridors continue to affect the efficiency of goods movement. This situation generates delays, increases operating costs and reduces the competitiveness of companies.

The world’s most important ports, such as Rotterdam, Hamburg, Los Angeles, Shanghai or Singapore, have experienced recurring congestion due to several factors:

• Increased trade volume driven by post-pandemic recovery and e-commerce growth.
• Shortage of port labor and lack of qualified personnel.
• Geopolitical disruptions, such as the war in Ukraine and conflicts in the Red Sea, which have forced a rerouting of shipping routes.
• Inadequate infrastructure, with overloaded terminals and warehouses.

This scenario causes vessels to spend days or even weeks in line to unload, affecting logistical planning and increasing transit times.

Sustainability and environmental regulations: the challenge of CBAM and climate change

Environmental regulations are transforming global supply chains. In the European Union, the Carbon Border Adjustment Mechanism (CBAM) will come into force in 2026, affecting companies in sectors such as cement, iron and steel, aluminum, fertilizers, hydrogen and electricity that do not align their operations with ESG (environmental, social and governance) criteria.

Furthermore, emissions trading (ETS) for road transport will come into force in 2027, forcing companies to renew their fleets.

In addition, the impact of climate change on logistics is becoming increasingly evident. Extreme events such as hurricanes, typhoons and droughts will continue to affect critical infrastructure. An example of this was the dana in Valencia, which generated significant delays in the port and land transportation, forcing the readjustment of transportation flows in an agile and efficient manner.

Need for skilled labor

One of the main issues facing the supply chain is the lack of skilled labor in all areas of activity.

While the driver shortage is the biggest concern, as 3.6 million drivers are needed worldwide, 235,000 in Europe and 30,000 in Spain according to estimates by the International Road Transport Organization (IRU), machinists for rail, warehouse operators, warehouse managers, automation experts or demand planners, among others, are also required.

High road dependence

Although in Europe the railroad has an acceptable weight in freight transport, in Spain the panorama is very different, since the market share barely reaches 4%.

The progress in the works for the Mediterranean and Atlantic corridors, although they will represent an important advance for the transport of goods by train, is limiting the capacity of the lines, causing some operational restrictions.

Therefore, road transport in Spain will continue to be led by road with a high margin, a situation that is becoming problematic due to the shortage of drivers.

Other issues such as the adoption of the 44-tonne maximum authorized mass and aid for fleet renewal will be key elements in freight transport in Spain.

Collaboration and visibility, the great allies in supply chain disruptions

The normality of supply chains since the COVID-19 pandemic is to live in constant disruption. This scenario forces all companies to readjust their processes and bet on technological tools that allow them to obtain complete visibility of the entire chain, all within a collaborative ecosystem.

In this context, obtaining real-time data is the most precious asset in all links of the supply chains, local and global.

Thus, the only way to ensure resilience and minimize the impact of disruptions is through a collaborative and digitized network, where all parties involved can share information in real time.

Therefore, the commitment to the digitization of the supply chain through Supply Chain Visibility (SCV) platforms is the key to reducing downtime and logistics costs, as priority is given to prediction rather than reaction.

FIELDEAS Track and Trace Supply Chain Visibility

The FIELDEAS Track and Trace Supply Chain Visibility platform is a great competitive advantage for the supply chain, as it allows:

• Real-time monitoring of all transport operations, including multimodal, regardless of the goods, the level of subcontracting…
• Traceability of your shipments from origin to delivery at destination, through the monitoring of key information.
• Artificial intelligence and proprietary algorithms to anticipate supply chain disruptions.
• Automation of processes and management flows adaptable to the needs of your business.
• Meet sustainability objectives by eliminating the use of paper and optimizing resources.

In short, even in the wake of various geopolitical, commercial or environmental events, supply chains have proven to be responsive and adaptable.

Thus, this is thanks to digital transformation and visibility and collaboration platforms such as FIELDEAS Track and Trace.